South Korea’s Tax-Chief Nominee Vows Crackdown on Crypto Tax Evasion

Lim Gwang-hyun, the nominee for South Korea’s Commissioner of the National Tax Service (NTS), said he would strengthen oversight of digital asset transactions and expand cross-border information sharing to counter tax evasion.

According to remarks made during a National Assembly hearing on July 15, Lim addressed several tax-related issues, prompting an enhanced tax evasion detection system.

South Korea Targets Crypto Tax Evasion

Speaking before the Planning and Finance Committee, Lim said, “In order to advance the capital market, we will continue to respond more resolutely to stock price manipulation, irregular capital transactions by controlling shareholders, and illegal profiteering.”

He emphasized the need to monitor new forms of tax avoidance, including activities involving virtual assets. To address this, Lim proposed the establishment of a virtual asset transaction history collection system to detect abuse early.

Lim also said the agency would enhance its detection system by applying artificial intelligence to past tax investigation cases. He explained that, in the future, inputting basic data such as financial statements could trigger automated detection of suspicious activity.

In addition to domestic efforts, Lim said he would “block the outflow of national wealth” by “expanding tax information exchange with foreign countries and diversifying overseas information collection channels for intelligent anti-social overseas tax evasion.”

“We urgently need a ‘pinpoint tax administration’ that focuses tax administration capabilities on areas that require tax justice,” he said.

The hearing was part of the confirmation process for Lim’s appointment to lead South Korea’s tax authority.

Global Effort on Digital Asset Reporting

While South Korea sharpens its enforcement tools, global authorities are also stepping up efforts to track crypto-linked tax evasion. The OECD has finalized its Crypto-Asset Reporting Framework (CARF), which mandates automatic information exchange on digital asset holdings across jurisdictions.

Several G20 nations have pledged to adopt the rules by 2027, indicating an international alignment on tax transparency in crypto markets.

However, implementation remains uneven. Some jurisdictions continue to serve as havens for anonymous or lightly regulated crypto activity, complicating audit trails for tax authorities.

While national regulators like Korea’s NTS adopt AI and real-time tracking systems, cross-border coordination will likely become a key test of whether global tax enforcement can keep pace with digital finance.

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